Report of Department of Industrial Economy – Ministry of Planning and Investment in March 24th 2012.
1 / The general situation:
In the first 03 months of 2012, the industry production index increased by 4.1% over the same period. Of which: mining industry increased by 3.2%; processing industry by 3.2%; production and distribution of electricity, gas and water by 13.7% over the same period.
The industrial sectors which had increasing production against the same period in 2011 include: crude oil and natural gas increased by 6%; mining and collecting hard coal by 0.8%; automobile and motorcycles manufacture 16 %; beer production by 4.5%; production, collection and distribution of electricity by 14.2%, drug, pharmaceutical and medicinal manufacture 20.1%; fodder production by 15%,...
The industrial sectors which had declining production against the same period in 2011 include: yarn and fabric production fell by 2.2%; production of pulp, paper and paperboard by 1.5%; production of fertilizer and nitrogen compound by 5.9%; steel production by 15.8%; production of footwear by 6.9%; cement production by 10.7%; production of quarrying, sand, gravel, clay and kaolin by 17.6%;
The production of some major industrial products:
Some industrial products has an increase, including: crude oil reached 4 million tons, up 10.3%; gaseous natural gas reached 2.42 billion m3, up 3.9%; LPG reached 201.2 thousand tons, up 27.8%; processing seafood was 373.7 thousand tons, up 13.6%; milk powder reached 17.5 thousand tons, up 15.5%; textiles from cotton was 65.2 million m2, up 16.7%; shoes, sandals, leathered fake boots for adult reached 13.9 million pairs, up 15.7%; washing machines reached 17.1%; motorcycles were 17,1%; electricity production increased by 15.1%; commercial water by 8.6%.
- Some industrial products had a decrease, including: coal reached 11.4 million tones, equaling 99.5% over the same period; sport shoes reached 73 million pairs, fell by 4.1%; fertilizers 527,6 thousand tons, down 9.2%; NPK mixed fertilizer decreased by 8.9%; chemical paint was 67.9 thousand tons, down 9.8%; cement was 12.1 million tons, down 10.7%; types of round steel obtained 697 thousand tons , down 21.9%; cars fell by 19%; air conditioners by 80.8%.
- As of March 01st 2012, the stock index of the processing industry increased 34.9% over the same period, most of the processing industries had higher index of inventory than the same period; as follows: production of cement, lime, mortar rose by 55%; production of iron and steel by 59.1%; manufacture of fertilizers and nitrogen compounds by 62.7%; production beer and malt by 48%; costume production by 41.4%; motor vehicle production by 38.7%; production of fibers and weaving by 6.6%; manufacturing of drugs, pharmaceutical chemistries and drug materials by 10.1%.
3. Import and export:
- Exports:
The export turnover in the first 3 months of 2012 was estimated at US$ 24.5 billion, increased 23.6% compared to the same period; in which: export of foreign-invested enterprises (excluding crude oil) was estimated to reach US$13.8 billion, increased 48.8%.
Export situation of some major industrial commodities over the same period was as follows: crude oil was estimated at 1.76 million tons, down 8.6% in volume and up 9.1% in turnover; coal reached 3 million tons, up 29.5% in volume and 3.9 in turnover; fuel, oil were estimated at 577 thousand tons and rose 15.4% in turnover; chemical products was estimated at US$ 74 million, down 42.2%; plastic products was estimated reaching US$360 million, down 25.4%; textiles reached US$ 3.2 billion, up 15.4%; footwear reached US$ 1.5 billion, up 14%; electronics, computers and components reached US$ 1.62 billion, increased 98%; bags, suitcases, hats and umbrellas reached US$317 million, up 20.5%; machinery, equipments and spare parts obtained US$ 1.2 billion, increased 61.3 %; iron and steel reached 396 thousand tons, down 18.7% in volume and down 20.2% in turnover; steel products reached 339 million, up 58.4% over the same period.
Therefore, some products of processing industry, such as chemical products, plastics, iron and steel declined, but the key products such as textiles, footwear, electronics, machinery and spare parts, steel products has increased considerably.
- Imports:
Import turnover of the first 3 months of 2012 was estimated at US$ 24.7 billion, increased 6.9% compared to the same period in 2011; in which, import of foreign-invested enterprises was an estimate of US$ 13.0 billion, up 30.3% over the same period.
The import of a number of main industrial products include: oil and gas reached 2 million tons, fell by 32.1% in volume and by 19.7% in turnover; 162 thousand tons of liquefied petroleum gas, fell 2,4% in volume and 7.9% in turnover; types of fertilizer was 618 thousand tons, down 27.4% in volume and 13.4% in turnover (in which: the urea fertilizer reached 51 thousand tons, declined 63.6% in volume and 59.6% in turnover); iron and steel reached 1.8 million tons, increased by 7.5% in volume and 2.2% in turnover (in which bloom was estimated at 118 thousand tons, down 57.1%); CBU cars obtained 7,284 thousand units, down 54% in volume; automobile parts and components reached US$ 375 million, down 21.4%; CBU motorcycles reached over 12,597 thousand units, reduced 47.3% in volume; types of paper reached 279 thousand tons, up 10.7% in volume; machinery, equipments and parts obtained US$ 3.4 billion, declined 1.4% in turnover; leather textile materials reached US$ 654 million, increased 2.5% in turnover over the same period.
Assessment of industrial import showed that many items reduced such as gasoline, liquefied petroleum gas, fertilizers, bloom when domestic market slowdown and because the production of domestic enterprises met a part of the demand for this commodities; CBU automobiles and spare parts of cars and motorcycles fell as a sign of decline in consumption (partly due to the proposed policies to increase fees and charges in traffic, frequent traffic jams in Hanoi and Ho Chi Minh City to affect the psychology of the consumer).
4. Solutions and recommendations:
- To continue to monitor closely the progress and the disbursement of the projects. Projects assigned capital in 2012 (including the State budget and Government bonds) should quickly implement the progress to ensure the investment needs of the urgent projects which need to be completed in 2012 and prepared for the next years;
- To implement the scheme of restructuring of state-owned enterprises, strengthen the management in order to improve the efficiency of state-owned enterprises;
- Businesses need to maximize production capacity and market demand in order to meet the necessities of the economy such as electricity, coal, petroleum, fertilizer, steel for construction, etc.; some consumer products such as garments, footwear, milk, vegetable oil, and export products such as crude oil, garments, footwear, mechanical, electrical wire and cable, ...;
- To continue to promote technological innovation, strengthen management, research on the usage of domestic raw materials, supplies, machinery and equipments, and performed drastically national target programs about energy saving and efficiency to reduce costs, lower production costs in order to increase the effectiveness of investment, production and business;
- To continue to implement policies in reducing the interest rate which encourage businesses to invest, produce and business, meet the demand of the domestic market and export. /.
Ministry of Planning and Investment